News

The global climate risk and political tensions raise the price of cereals with increases of up to 7 euros in the León market

Published May 9, 2024

Tridge summary

The global climate and political situations are causing a significant increase in cereal prices in the León market. Wheat and triticale have seen a rise of up to 7 euros, while corn has increased by 6 euros. Factors contributing to these price hikes include drought in Russia, cold weather in Europe, flooding and drought in Brazil, and delays in corn planting in the US. Additionally, geopolitical tensions, such as Israel's rejection of a ceasefire in Gaza and Russia's verbal escalation, are adding to the market's nervousness. The upcoming USDA report on corn is crucial as it could adjust production estimates, potentially driving the market positively.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The global climate risk and political tensions raise the price of cereals with increases of up to 7 euros in the León market for wheat or triticale or 6 for corn. And the drought in Russia, the world's main exporter of wheat, has been joined by the frosts of recent days, unlike in Europe where rain continues to be a problem in many regions; In the case of Brazil, it suffers from flooding in the Rio Grande Region (even basic infrastructure is affected) and drought in the center of the country, and in the US there is a significant delay in corn planting. In addition to this global climate risk, also the geopolitical reasons for Israel rejecting a ceasefire in Gaza, and the increase in verbal escalation by Russia and several Western countries, increase tensions and make the markets nervous. We will have to be very attentive to the USDA report on Friday, especially in the case of corn, since the production estimates of private analysts are well below the estimates of the last report ...
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